Nestle Singapore Pte Ltd Marketing Essay

Nestle Singapore Pte Ltd Marketing Essay Nestles promising to providing quality products to Singapore people. dates back more than 90 years ago trading MILKMAID condensed milk under the Anglo-Swiss Condensed Milk Company. Over the years it has been available in Singapore for Singaporeans, Nestlà © has won the trust of Singaporeans for being a food manufacturer with the highest safety and quality standards with this products.   Nestlà © started its business and operation in Singapore in 1912 and has since been building on its success, largely as a net result of its operating principles. These seek primarily to:- Offer Singaporeans the highest safety and quality standards in our food and beverage products in Singapore. Nestle Utilized the most new and up-to-date technology and its accumulated science-based expertise in the manufacture of milk products. Nestle fulfill its broad responsibility as a corporate citizen member by participating in community and social projects that contribute to the speedy development of the country. Nestlà © brands are household names in Singapore and very well-known company. These include MILO, NESCAFÉ, MAGGI, NESTLÉ NESVITA OMEGA PLUS ACTICOL, KIT KAT, PURINA, FRISKIES and dozens of other market leaders in their product categories.   Segmentation, Targeting   Positioning of  Nestle. Executive Summary Nestle is a worldwide company of milk products and nutrition, chocolates, beverage, catering  and  many  type  of  confectionary  goods.  It  has  its  millions  of  customers  worldwide. Today  Nestlà © Singapore Limited is strongly positioned to grow through its policy of  constant  innovation  and  renovation,  concentrating  on  its  core competencies and commitment to high quality, with the aim of providing the  best quality food to the people of Singapore. In the report we have brought a  discussion about the marketing segmentation of Nestle, their target  market and positioning strategy in Singapore. The way Nestle identify its different target customers different demands with an efficient way and how it satisfies its consumers by creating greater  facilities by the combination of separate products or marketing mixes is shown in market segmentation of Nestlà ©. In the part of market targeting we have discussed how Nestle ha ve made various segments and decided to spread their whole operation in whole Singapore. In the last part of this we have discussed how Nestle reached to the customers point more Easily and effectively comparing with their competitors in the highly competitive food beverage market of Singapore by making  differentiation of target Users and customers. Nestle is the largest nutrition and foods company in the world, founded and headquartered in Vevey, Switzerland. The journey of Nestle begins when Henri Nestlà © developed the first milk food for early in 1867, and saved the life of a neighbors child. This man makes a food for the infant babies who are unable to take mothers feed can use it as an alternative food. Henri Nestle retired in 1875 but the company was going on a full swing. In the following year the Nestlà © company added condensed milk, so that the firms became direct and fierce rivals. After that the company was merged in 1905 with the another company named Anglo-Swiss Milk company which was founded by two  brothers  named  George  Page  and  Charles  Page.  The  company  reenter significantly during the First World War  though it fall in debt, a banker provide facility and help it to reduce its debt. After the Second World War  , the company eventually increased its offerings beyond its early c ondensed milk and infant formula  products. The 1920s saw Nestlà ©s first expansion into new products, with chocolate the  companys  second  most important  activity. Nestlà ©Ã‚  felt the effects of World War II  immediately. Profits dropped from US$20.1 million in1938 to US$6.1 million in 1939. But at the end of World War II was the starting of a dynamic phase  for Nestlà ©. Growth accelerated and companies were acquired. At present the company operates in 86 countries around the world and employs around 283,000 manpowers. Theoretical  Consideration Marketing  Strategies: The  Strategic  plan  provides  the  companys  overall mission and objective and new hpopes to achieve companys views. Through market segmentation, targeting and positioning the company takes decisions which customers it will provide and how. The company also makes designs a marketing mix made up of  factors under its control product, price, place,  promotion. Strategy of Nestle in Singapore:   Nestlà ©s basic strategy is to cover only the urban area of Singapore. Thats why  they  are  doing  their  activities  in  main  and  metropolitan  cities  of  Singapore. They want to put babies and children healthy and ensure their  sufficient nutrition.  Thats  why  main and large range  of  their  products  are  baby  milk food  products. They also target new age generation to build a strong relationship by  providing various eating products. In the report, we are going to focus of Nestle is to segment, target the  potential customers and to positioning of their profitable products. Their  segmentations, targeting, positioning process are given below. Nestle want to change customers toward their products. Thats why they are offering  new  products  regularly.  They  also  provide  many  social competitions for babies to go their  mindset. In this report we are looking to focus of Nestle Singapore is to segment,  target  the  major  customers  and  to  position  of  their  profitable products. The relevant information is given below:- Market  Segmentation: The marketing concept asks for  understanding customers requirements and satisfying their  requirements and needs better than the others do. But many customers have different needs and it rarely is possible to satisfy all customers by treating them same just like. Market segmentation is the searching of portions of the market that are different from other. Segmentation provides the firm to better satisfy the needs of its potential customers. 1.  Clearer  understanding  of  the  requirements  and  needs  of  selected  customer  groups. 2. More effective positioning in this place. 3. Greater precision in selecting  promotional Transportation vehicles and techniques. Bases for  Segmentation: Users markets can be segmented on the basis of following customer characteristics. 1. Geographic area 2. Demographic area 3. Psychographic area 4. Behavioral area Geographic: Nature: Nestlà © Singapore segmented its market for Nescafe Ice  based on the geographic weather: hot and cold.   Nescafe Ice: A coffee which can be consume with ice. During warm season consumers consume this coffee with normal or cold water with ice cube to  bring freshness in their body. Demographic Age: Nestlà © segmented market for its major products based on the genration. For  the products Cerelac, Lectogen, Koko Krunch, Nido, Nestle divided the market segment for new born baby and  children of different ages. Nido It is  nutritious milk specially makes for children 2 years onwards. It includes 25 minerals and vitamin D which helps childs growth. Cerelac : Nestle also provide cerelac for new aged baby. It contains milk and rice mixture for less than one  years baby. It fulfills babys proper nutrition in foods. Nesquick, Koko Krunch : Both are chocolate milk for babies. Nesquick  and Koko krunch contain childs required growth. Its very sweet and delicious and also contains vitamin protein, mineral. Lactogen : Nestle Singapore brings full cream milk powder in the country. It gives baby required nutrition. Lactogen 1 is for babies whose age less than 6months and lectogen 3 is for babies whose age  is below 1 year. Income : Nestle segmented their market based on customers earnings in an effective way. Lectogen : Nestle usage tk 800 for per 900 gm Lectogen 12 milk powder. They also usage tk 1000 for 900 gm Lectogen 3 milk powder pack. Middle income and low income people are not able to buy these products for their  Ã‚  babies. Occupation :  Nestle  segmented  the  market  based  on  their  users occupation. Nescafe classic : This product is for those who work busy and hard and needs more freshness. Both the male and  female who need more caffeine and this type of needs Nescafe classic is for them. Psychographic: Life  style  and  personality:  Nestle  Singapore  provides  KIT  KAT  these  people who really want to taste and enjoy chocolate. Nescafe 3 in 1 is for exclusively those users and customers who are really busy and do not have more time. They can save their time by taking Nescafe 3 in 1.All the things sugar, milk and coffee remain included. Behavioral Benefits Based on benefits Nestle Singapore segmented their market in an effective way. So they provide Cerelac for those customers who want more  profit from the product. Cerelac includes  a high nutrition for babys whose age below 1 year. Two most important things rice and milk remain included in cerelac. On the other hand, cerelac includes vitamin, mineral and all nutritious elements for babies.   Target Marketing: Market segmentation reveals the firms market opportunities. Then the firmsort  market  targeting  by  evaluating  the  many types  market  segments  and deciding which and how many segments it will targeting.   Nestle evaluated the various market segments on the basis of  segment  size  and  growth,  segments,  structural  attractiveness,  and Nestle objectives and resources and decided to launch their operation all over the Singapore country. Nestle distributes their target market because of having unique requirements and wants.  Nestle Singapore selected their  target market into two market coverage policy: Undifferentiated : Nestlà © has offered several products such as Nescafe 3  in 1Maggi noodles, and Kit Kat to the people of the whole Singapore without differentiating the market segment. Differentiated : Nestle also selects the differentiated marketing. It offers different product for many segments based on different ages, occupation, season and climate of Singapore. Nescafe 3 in 1 : Coffee for people who are busy in life. Koko  Krunch,  Nesquick   :  Chocolate  milk  who  want  to  get  taste  of  real chocolate. Nescafe Ice : Cold coffee for the people in hot and warm weather. Concentrated: Through concentrated marketing, Nestlà © achieves a strong market position because of its greater knowledge of consumer requirement. In theniches  it  serves  and  special  reputation  it  acquires.  Nestlà ©Ã‚  specializes  in  producing baby foods. It offers nutritious milk powder Lectogen 1 for  babies whose age is less than 7 months and lectogen 3 for babies whose is under 12month. It also offers baby nutrition cerelac for baby less than 12 months. Positioning Strategy: By  creating  product,  service,  channel,  people  and  image  differentiation  Nestle arrives the consumer touch point more easily, effectively efficiently in comparing with other competitors in the highly competitive food processing market. Product  Differentiation : Nestle brings a many of  product for target customers.   They provide 25 types of minerals in Nido for children. It also provides Cerelac  and  Lactogen 1  3  for  newly  born  baby  exclusively.   Now  the doctors says these products for babies to their parents for high maximum nutrition  Nescafe  is  a  product  which  contains  4  types  of  categories.  They  offer  Ã‚  Nescafe ice for hot and warm weather, classic for all 3 in 1 for those who are busy in life. They  provide  Maggi  including  Maggi  instant;  Maggi  2  minutes  which Includes and contain various minerals, vitamins and nutritions. Maggi also provide magi healthy soup and Maggi corn soup but charge the same  price. Channel  Differentiation :  Nestle  reach  their  products  to  the  customersthrough  their  experienced  market  salesman  and  transportation.  So  that  their  Ã‚  products. are much easy to  their customers. Image  differentiation Nestlà ©s logo is  totally different from others competitors that are greatly choices by its customers. For that reason customer easily identify them in the  market which is another effective benifits for Nestle. People differentiation Nestle has a large number of manpowers that are highly educated and trained. In Singapore, 400 employees are working in market Company chairman; Peter Brakeck- Letmathe and CEO Paul Bulckeare highly educated, wise and experienced people. They are running this  business successfully for a long time. Service  differentiation Another  advantage  for  this  company  is  better  service for its respective users from its competitors. They provide 247  hot  line  service.  High  quality  checking  is  providing for  its customers. Its marketing dept. and public relation dept. are working for  finding out customers new needs and  response toward their nestle products. Selecting an overall positioning strategy: The full standings of a brand is named the brands value proposition-The full mix of advantages up on which the brand is differentiated and positioned. More for more More for more positioning includes providing the most upscale products or service and charging a higher price to cover the higher  cost. Exactly Nestle is doing that. Nestlà ©s products provide more benefit and for that Nestle charge higher price than other competitors. Nido provide nutrition and charge 250 tk for 400 gm. But Fresh, Marks do not arrange nutrition and charge less than that of Nido. Respectively Nescafe, Maggi noodles contains quality for high price,  rather than competitors. Positioning Statement Baby  Products To  babies  who  are  deprived  of  proper  nutrition,Nido,Cerelac,Lactogen are the nutritious milk Product that give you more nutrition other than any other brand because these includes different types of vitamin, mineral etc. Nescafe To busy people who drink coffee and have little time for taking rest, Nescafe is the coffee that gives you more energy than any other brand  because it has the highest level of  caffeine, Maggi To people, noodles and soup consumer who looks better quality, Maggi noodles and healthy soup that gives you proper nutrition than any other brand because it has the best quality. Their motto for business is GOOD FOOD for GOOD LIFE Conclusion The advent of consumer food products has brought an immense change in the field in the consumers food habit. Nestle has done well to adding its  customers  loyalty  operating  as  a  market  competitors  in  its industry. Nestle  is  one  of  the  largest  food  processing  company. Their products and quality mainly includes on their experience and efficiency.  Nestle provides quality that leads to good business growth and good development.It  has  segmented  the  market  based  on  certain  clustered  preferencesdeploying multi-stage segmentation approach to meet individual requirements of  the customers. Offering brand new products would also close its old products gaps to a great extend promise satisfaction and loyalty. In our report, we try to present the segmentation, target marketing and  positioning  strategy  of  Nestle  and  suggest  some recommendations based on the marketing procedure.   IMC Stratgies PROMOTION Promotion activities perform a major role in re-launching any product. Addition in target market is possible by personal selling. It adds persons in retail stores telling the benefits to important customers about importance of milk in standard  packed form. Awareness performs the most important role. They should taste housewives on many places. Because they are the main servers of such kind of  nutritional diets to  their family members.TV commercials and Bill Boards should be planned to advertise properly. There are many promotional methods like personal sales, advertisements, sales  promotions, public relations etc.  but the method accepted by  Nestlà © for introducing  Nestlà © UHT Milk was advertising, outside printed media for advertising like, hording board, newspaper, posters outdoor etc.  Nestlà ©Ã‚  seeing the  old  customer  of  the  imported brands  and  potentials customers via its advertising promotions. In their advertisement, Nestlà © mostly focus the small kids who are the major  Ã‚  portion of our population and milk and such kinds of  Products  are  main  requirement  of  enhancing ability in  children  that  the  reason  Nestle launched  Nesvita  Milk  product especially  designed  for  younger  children  because addition of calcium diets in  routine diet chart is main  requirement. To remind the consumers about the nestle, Nestlà © also made some special platform for retailers and hold them on t heir shops and as compared to other milk selling companies running in the country Nestle shows always attracting messages to feels customers that always drink milk but only I  real form . RE LAUNCHING After thoroughly analyzing the reasons of presence of large number of  competitors Nestle decided to re-launch it product with different new packing. It was an opportunity for Nestle to control the market in that a way  that it will introduce. its all the discrepancies such as  shortage, inflation based pricings which given opportunity to the competitors to control the market. BELOW THE LINE Below the line includes following  mediums of advertisement. à ¢Ã¢â€š ¬Ã‚ ¢ Direct mail to users   à ¢Ã¢â€š ¬Ã‚ ¢ Outdoor  advertising à ¢Ã¢â€š ¬Ã‚ ¢Through Transit   DIRECT MAIL ADVERTISING It  is  any form  of  advertising  present  directly  to  the  new comers,  this can be  through the mail, fax, online computer services, sales personnels, retailers or  other means rather than through traditional mass  media. Postcards   Nestle issued postcards to their home and office persons in the category of outlets and whole sellers. On different occasion nestle send them different type of post cards to  build long term healthy relationships so that they can contribute in adding the market share of their product . Leaflets/ flyers Nestle has distributes many types of leaflets, which inform information about Nestle Milk products, at different outlets. Folders / brochures Nestle distributes brochures of their product to their users through internet to make them inform of new innovations and products. This helps nestle in adding more customers. OUTDOOR Nestle expenses a big share of  their advertisement budget on the outdoor  advertisement in Singapore, which includes   à ¢Ã¢â€š ¬Ã‚ ¢Painted Billboards at different places à ¢Ã¢â€š ¬Ã‚ ¢MMT in various locations à ¢Ã¢â€š ¬Ã‚ ¢Vinyl Sheets located in public places à ¢Ã¢â€š ¬Ã‚ ¢Perform Rotary Plan Here is an example of their billboards and rotary plan Nestle has hanged more than 500 billboards across the roadside. They have put on different themes of them, which are presenting different situations in which people  are  using  real  water.  According  to  the  NESTLE they  perform heavy outdoor advertisement to aware people about the availability of their product because it is a product for which people never pre-determined plan to purchase it so to encourage them for the purchase of Nestle Milk Products they have to place billboards.  Beside  this  they rotate  the  posters  of  their  billboards  after  few months the reason for this is that people not interest in those themes when they see it for a longer time so when they exchange them and place the new different one that create the interest among the  people. TRANSIT ADVERTISING Transit advertising is a category of public places out of home media that includes bus and taxicab  advertising  as  well  as  posters  on  transit  places, Bus  terminals,  and Display at airports .Types of  transit advertising à ¢Ã¢â€š ¬Ã‚ ¢Inside cards in public transports à ¢Ã¢â€š ¬Ã‚ ¢Outside posters on Vehicles à ¢Ã¢â€š ¬Ã‚ ¢Terminal  posters at various locations à ¢Ã¢â€š ¬Ã‚ ¢Taxi / bus walls. Nestle 2010 Creating affordable access to protein [online] Available from: http://www.nestle.com/CSV/CSVinAction/SlideShows/essentialprotein/essentialprotein.htm Nestle 2010 Press Release [online] Available from: http://www.nestle.com/MediaCenter/PressReleases/AllPressReleases/NovartisMedicalNutrit http://www.nestle.com/Resource.axd?Id=602C42FE-04D6-4669-BEE1-1027492FE5E8 http://www.nestle.com/AllAbout/AtGlance/Introduction/Introduction.htm Vanhuele, M., Dreze, X., (2002). Measuring the Price Knowledge Shoppers Bring to the Store.Journal of Marketing. 66 (dhs), 72. Peter, J. P., Donnelly, J. H (2004).Marketing Management: Knowledge and Skills. 7th ed. China: McGraw Hill Book Co. 145. http://business.timesonline.co.uk/tol/business/movers_and_shakers/article6639144.ece?token=nulloffset=12page=2